Business sentiment in Canada improved before Iran war
A Bank of Canada survey shows business sentiment reached its highest level since 2022 before the Iran war. Firms expect higher costs for fuel and freight.
Canadian business sentiment had begun to show signs of improvement prior to the conflict in Iran, according to a Bank of Canada survey released on Monday. While the initial data indicated a brightening outlook, a subsequent smaller sample of firms suggested that geopolitical tensions are now driving expectations for higher input prices across several key sectors.
The central bank conducted its primary survey of 100 businesses between February 5 and 25. Following the start of the war on February 28, the bank performed a follow-up assessment in March, targeting 20 firms deemed most susceptible to the conflict's economic ripples. The results showed that many businesses have since revised their expectations for costs upward, citing pressures on fuel, freight, fertilizers, and exchange rates.
